When a CEO receives stock shares for compensation, where do those shares come from?

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If I’m understanding correctly, a company at any given time has a fixed number of shares that split the ownership of that company, thus if a CEO is paid with shares someone else must be giving up their shares.

In: Economics

10 Answers

Anonymous 0 Comments

the board can issue more shares,

the share holders vote on the compensation package and if they say yes the board creates more shares and then gives those shares to CEO.

the board can also create shares as a fund rising effort and a few other reasons.

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